Buy Binance Coin (BNB)
About Binance Coin
Binance Coin is a cryptocurrency created by the Binance cryptocurrency exchange on the Ethereum platform for internal financial transactions. With BNB, absolutely any cryptocurrency can be purchased on the trading platform. Furthermore, when using Binance Coin in its work, the exchange offers its customers bonuses, particularly a reduced commission rate for financial transactions. In addition, BNB is accepted as a means of payment by most online trading resources.
Binance Coin cryptocurrency has limited issuance. In addition, the creators of electronic money constantly withdraw a particular portion of coins from circulation. This factor is the key to a steady increase in the value of Binance Coin. This is primarily because the value of recycled coins is evenly distributed among the remaining coins in circulation, so their price increases accordingly.
BNB can be purchased on the Binance exchange for any real or cryptocurrency and the EtherDelta platform for Ethereum.
In addition, over the past year, Binance Coin's developers have entered into several long-term cooperation agreements with significant investment funds and management companies, positively impacting the cryptocurrency's exchange rate.
History of the cryptocurrency Binance Coin
Binance Coin was released in 2017. The system was developed by Changpeng Zhao, the founder of the Binance exchange, a Chinese programmer. The total amount of coins issued is 200 million tokens. Although according to the decision of the coin creators, only half of the coins were put into circulation. The exchange reserved the right to dispose of the remaining tokens.
At the time of issue, the value of one coin was 2,701 BNB per ETH or 20,000 BNB per BTC. Initially, the developers of Binance Coin presented the following scheme for the distribution of coins:
- 50% of the total remains in the ownership of the cryptocurrency creators;
- 35% is to be used to refine and update the technical details of the cryptocurrency exchange;
- 15% makes up the reserve fund. The use of these coins is only allowed in an emergency.
In 2019, Binance Coin began functioning as a standalone blockchain. The system switched from the ERC-20 standard to the more advanced BEP2 standard. The exchange of coins obtained using the old standard occurred automatically.
Initially, if you want to buy BNB you should know that BNB could only be purchased for USD, RMB and a few of the most popular cryptocurrencies. However, with the increasing popularity of electronic coins, the exchange management decided to peg BNB to the most popular global currencies, particularly the euro and the Russian ruble.
At the moment, the use of Binance Coin is available:
- To purchase different types of cryptocurrencies;
- To convert and withdraw BNB into any world currency;
- To pay for goods and services worldwide.
The Binance Coin price
Binance Coin is considered to be one of the most promising cryptocurrencies. Since its introduction, it has generated a net profit of 450% of the initial investment made by its developers.
Binance Coin saw particularly intense growth in 2018, at which time the cryptocurrency had the highest growth rate compared to most electronic coins.
At the beginning of 2020, the value of a single BNB coin was USD 39 in 12 months. It had risen to USD 108. Thus, the upward trend in the exchange rate has remained at a consistently high level.
Several major factors influence the Binance Coin exchange rate:
- The global cryptocurrency market situation;
- Stable operation of Binance exchange;
- Changes in the rate of the world's leading cryptocurrencies, particularly Etherium, to which Binance Coin is pegged.
Even though Binance Coin cryptocurrency is narrowly accessible, investor interest in it has been steadily increasing. Investment has been particularly active during the crisis caused by the global pandemic. Unlike Bitcoin and some other high-cost cryptocurrencies, which lost up to 70% of their value, BNB showed resilience. The correction was negligible (less than 20%), and the lost ground was recovered in no time at all. This was because many holders of cryptocurrencies, which lost significantly in value, rushed to transfer their assets to more reliable coins in the face of widespread panic.
Binance Coin's developers have upgraded its processing system to seamlessly receive and process large amounts of incoming data for fast transactions. Although users of the network appreciated the introduction of innovative technologies, their active number increased by 28% in three months, which, in turn, had a direct proportional impact on the cryptocurrency's exchange rate.
The current exchange rate stands at USD 126.01 per coin. However, according to forecasts by financial analysts, this is not the limit. By the end of 2021, the value of Binance Coin is expected to exceed the $160 mark.
Despite the positive dynamics of BNB, experienced experts do not recommend investing all of your money in one currency. Instead, it is optimal to create a so-called investment portfolio, including at least three cryptocurrencies of different pricing and operating platforms.
Is it safe to invest in Binance Coin online?
Is it safe to invest in Binance Coin online? Because Binance Coin has recently shown stability in its market position, cryptocurrency investment experts agree that BNB is an optimal long-term investment. However, despite the positive outlook, cryptocurrency investing comes with high risks. Therefore, a potential investor should study the advantages and disadvantages of the system before investing their money in electronic coins.
If you want to buy Binance Coin, you should consider the benefits and disadvantages of Binance Coin.
Benefits of investing in Binance Coin:
- Cryptocurrency can only be bought or sold for real value;
- High speed of transactions;
- Availability of purchase. The amount of the initial investment is 10 US dollars;
- Low commission rate (not more than 2% for any transaction);
- The open policy of the developer company. The user at any time can track the status of their investment;
- Simplicity and anonymity of the work process.
Significant disadvantages include:
- Tight binding of the cryptocurrency to the Binance exchange. In the case of difficulties in the work of the exchange, the rate of Binance Coin will automatically lose its position;
- The lack of spread of BNB as a means of payment among large financial institutions;
- Demand for Binance Coin provokes too rapid growth of the exchange rate. If the cryptocurrency declines in popularity, it could experience a sharp correction in value.
However, resourceful traders manage to exploit the cryptocurrency's weaknesses to their advantage and profit from it, such as in CFDs.
Prospects for Binance Coin
To date, the active growth rate of Binance Coin allows you to conclude the reliability of working with this system. Furthermore, based on the data analysis for the whole period of BNB presence on the cryptocurrency market, we can say with a high degree of confidence about its stability under the influence of various negative factors.
Experts predict that Binance Coin will reach its highest value by mid-2022. By that time, the financial market is expected to fully recover from the effects of the global pandemic, allowing investors to invest more actively in the promising cryptocurrency.
This factor allows Binance Coin to be seen as a medium-term and, ideally, a long-term investment. By purchasing electronic coins when they are relatively low in value, they can be sold at a higher price later on. Therefore, the limitations of their circulation on the exchange play an essential role in shaping BNB's pricing policy.
The unique security system allows users to conduct financial transactions anonymously with the highest level of protection, which is why some users use the system not as an investment project but as a reliable platform for transactions.
The development team is constantly working to improve their system, allowing BNB to avoid disruption as the number of active users increases.
How to invest in Binance Coin (BNB)?
If you want to buy Binance Coin first of all, you need to register on the platform's website where you are going to buy BNB. When registering, you will need to provide the required information. The registration process is quick and easy. Then you will be given access to the world of trading.
A demo account is a gift for any newcomer to the world of trading. You can try out different strategies and trading techniques, and there is no risk of losing money. So if the platform offers you the chance to get a demo account, be sure to take it.
As time passes, you'll conclude that you've learned enough and that it's time to start trading. In that case, you can open a real account and start trading. To open a real account, you need to make a minimum deposit by credit card (you can also use a debit card) or via an e-wallet or bank transfer.
If you are going to invest in Binance Coin choose the option that suits you best and start trading.
This year, the cryptocurrency's creators have announced the involvement of new severe participants in the project, including several large South Asian companies engaged in developing innovative computer technology.
The use of advanced technology, high resilience to financial market volatility, and a robust security system make Binance Coin one of the most promising projects for the next few years.
Fortune favours the bold!